Voluntary Administration

There are a number of reasons why a company can fall into financial hardship. Voluntary administration is a tool for companies in distress to use to help directors avoid insolvent trading, and potentially liquidation.

Tax Debt

We can help you avoid a tax debt, negotiate with the ATO on your behalf and offer support and negotiation with finance for tax debt loans. We provide all the necessary information on what to do if the ATO takes action against your company.

Director Advice

Revive Financial specialises in helping directors who need advice about their company. We can help you understand your duties, navigate the daunting area of liability and give you advice on the best options for the future of your company if you’re facing financial difficulties.

Turnaround & Restructuring

When it comes to the challenging economic climate in Australia, even the most sophisticated business can fall prey to volatile market conditions. By addressing insolvency issues early enough, there might be something you can do to turn it around.

Court Liquidation

If a creditor of your company is owed money, they can take legal action to have your company wound up by way of a Court Liquidation. A statutory demand arriving in the mail is the first sign a winding up application has been filed and you may only be weeks away from having a liquidator appointed to your company.

If you are facing a winding up application, it is essential that you seek urgent advice to understand this process and the options available to save your company, or its business.

What is Court Liquidation?

Court Liquidation is an involuntary liquidation process where a creditor or shareholder, among other parties, apply to court to commence the winding up of your company. Most Court Liquidations are commenced by a creditor. Commonly this occurs where a company has not paid an amount demanded under a Statutory Demand.

How does Court Liquidation Work?

Court Liquidation starts with a creditor issuing a Statutory Demand for payment. Your company is required to pay the creditor’s debt within 21 days. If you fail to make this payment, the company is then presumed insolvent and the creditor may apply to the court to wind up your company. Once the court date arrives, the Judge will hear from both parties and may decide to appoint a registered liquidator to your company.

Why Has Your Company Been Ordered into Court Liquidation?

Some of the reasons why your company might be ordered into Court Liquidation may be because:

Your company is insolvent

The director/s of your company have acted in their own interests, rather than in the interests of the shareholders

The affairs of your company are being conducted in a manner that is oppressive or unfairly prejudicial to one or more shareholders

The court has considered that the interests of the shareholders, creditors or the public are best served with this order

Our experts can talk you through your situation and provide detailed advice. Get in touch for a free consultation today.

How Does a Court Liquidation Affect Your Business?

In the event of a Court Liquidation, the liquidator assumes full control of the company’s affairs. This includes taking possession of the company’s assets and displacing the directors. A Court Liquidation ensures that an independent person, the liquidator, is appointed to administer the affairs of the company in a fair manner.

The Liquidator’s Role

The Liquidator who is appointed by the court to your company has duties to:

Identify, collect and sell the assets of the company,

Advise creditors and other parties or the liquidator’s appointment and respond to their queries,

Investigate the company’s affairs to identify – and if commercially viable – pursue claims against the directors and various parties in respect of insolvent trading, uncommercial transactions, unfair preference claims and other claims available to the liquidator,

Report to creditors on the liquidator’s findings and distribute a dividend to creditors if there are sufficient funds recovered to do so,

Complete various statutory reports and lodgements with the Australian Securities and Investments Commission (ASIC) regarding the directors’ conduct and other matters, and

Once all matters have been finalised, request ASIC to deregister the company.